- A market order is an order where the user buys or sells immediately at the best available market price, with the goal of fast execution.
For example, if the latest BTC price is 20,000 USDT, and a user wants to quickly buy BTC, they can place a market order and set an order amount (e.g., 100 USDT). The order will be executed immediately after submission.
Note: In a fast-moving market, the fill price of a market order may not be exactly 20,000 USDT. It will be filled at the real-time market price, which may be higher or lower than 20,000 USDT.
- A limit order allows the user to set the order quantity and the highest buy price or lowest sell price they accept. When the market price reaches or is better than the preset price, the system will execute the order at the best available price within the limit range.
For example, if the current BTC price is 20,000 USDT and the user wants to buy at a lower price of 18,000 USDT, they can place a limit order at 18,000 USDT. The order will be executed automatically when the price drops to 18,000 USDT or below.
- What is the difference between the two?
Market order: No price input is required. The order is executed immediately at the best available market price by matching with existing orders.
Limit order: The user must set a desired price. The order is placed into the order book and provides liquidity, waiting for a matching counterparty order before it can be executed.